UHAL

U-Haul Holding Co. 10-Q Summary: Fiscal Q3 2026 (Ended Dec 31, 2025)

Business Context and Reporting Period

This filing covers the third quarter of fiscal year 2026, ended December 31, 2025. U-Haul Holding Co. operates three primary segments: Moving and Storage (rental trucks, trailers, self-storage), Property and Casualty Insurance, and Life Insurance. The company reported a net loss for the quarter, a significant deviation from the prior year's profitability, driven primarily by increased depreciation and equipment disposal losses in the Moving and Storage segment.

Key Financial Metrics

Material Changes vs. Prior Period

• Profitability Decline: Net earnings swung from a $67.2 million profit in Q3 2024 to a $37.0 million loss in Q3 2025. Operating earnings dropped 77.7% year-over-year.
• Depreciation and Disposal Losses: The primary driver of the loss was a $44.8 million increase in depreciation expense and a $29.8 million increase in net losses on the disposal of rental equipment. Management cited increased fleet size and decreased resale values for older units.
• Revenue Growth: Despite the loss, total revenues increased 2.0% year-over-year. Self-storage revenues grew 7.9% ($17.9 million) due to occupancy gains and new capacity. Self-moving rental revenues grew 0.9%.
• Interest Expense: Interest expense rose 24.8% to $95.5 million due to higher debt levels and increased average cost of debt.
• Capital Expenditures: Gross capital expenditures for the quarter were $688.2 million, down from $936.5 million in the prior year quarter, though YTD spending remains high at $2.6 billion.

Guidance, Outlook, and Risks

• Outlook: Management expects to maintain high levels of real estate capital expenditures through the remainder of fiscal 2026. The company plans to continue investing in the U-Box program and expanding the rental fleet, funded largely by debt and cash from operations.
• Risks:
  • Used Vehicle Market: Declining resale values of rental trucks are increasing net losses on disposals and impacting depreciation calculations.
  • Interest Rates: The company has significant variable rate debt exposure ($547.5 million unfixed). A 100 basis point increase in SOFR would decrease future earnings by approximately $5.5 million annually.
  • Competition and Economy: Adverse economic conditions or heightened competition could impact transaction volumes and pricing power.
• Unusual Items: The company received a $2.4 million tax refund related to an IRS examination finalized in the quarter. Additionally, Repwest (insurance subsidiary) paid a $100 million dividend to the holding company in December 2025.

Investor Verification Checklist

• Fleet Residual Values: Verify the assumptions used for the declining resale values of the rental truck fleet and the impact on future depreciation schedules.
• Debt Maturity Profile: Review the annual maturities of the $8.0 billion in debt obligations to assess refinancing risks in a higher interest rate environment.
• Self-Storage Occupancy: Monitor the trend in occupancy rates (71.7% at period end vs. 78.1% prior year) to ensure revenue growth is not solely driven by new capacity additions.
• Insurance Segment Performance: Confirm the stability of the Property and Casualty and Life Insurance segments, which provided significant earnings ($20.8M and $5.8M respectively) to offset the Moving and Storage operating loss.
• Capital Allocation: Assess the sustainability of the $1.35 billion estimated reinvestment in the rental fleet for fiscal 2026 given the current margin compression.